Capital Budgeting to the CEO

 

You are the new Finance Director of a private hospital and one of the first tasks entrusted to you
is to determine if the purchase of a new ultrasound machine would be a wise investment. The
new equipment is estimated to cost $10 million and the projected net cash flows for the next eight
(8) years is $1.6 million per year. It must be noted that the expected useful life of these ultrasound
machines is generally five (5) years. Current investment rates are at 7% and this would be used
as the discount rate for the assessment.
You are meeting with the Chief Executive Officer (CEO) and you are proposing that the Capital
Budgeting technique of Net Present Value (NPV) be applied to assist with making the decision.
However, she has indicated that she skeptical about this approach, especially as she is not familiar
with NPV.
Take this opportunity to explain Capital Budgeting to the CEO, three (3) types of techniques
that can be applied and the advantages and disadvantages of each technique. Also, clarify why
you have chosen the NPV methodology for your assessment.
Additionally, please present the results of the NPV calculation and recommend if the purchase
of the new equipment is viable. In your recommendation, include the challenges/limitations
that this NVP model can present, as well as outline any other qualitative factors that should
be considered in the decision.

Sample Solution

Long-term investments known as capital investments involve assets with multiple-year useful lifetimes. Capital investments include things like building a new production facility and purchasing machinery and equipment. A technique for calculating the financial feasibility of a capital investment over its lifetime is capital budgeting. Capital budgeting, in contrast to several other forms of investment analysis, places more emphasis on cash flows than profits. Instead of accounting the revenues and expenses resulting from the investment, capital budgeting focuses on identifying the cash inflows and cash outflows. For instance, capital budgeting includes non-expense items like loan principal payments.

scaled by output_sample() capability. Primary CHALLENGES OF IMPLEMENTING IIR FILTER FOR C6416: ‘ The channel configuration ought to be checked whether it is steady or temperamental. Since, supposing that it is in a shaky state, then, at that point, the channel can’t be carried out for C6416. ‘ The parts ought to be checked appropriately with respect to their capabilities prior to involving them for the execution. ‘ The association between the instruments ought to be made accurately. ‘ The code which is intended for the execution of the channel ought to have the specific construction as the channel. ‘ The code ought to be consented to check that the code has no mistake. ‘ The DSK6416 board is a decent point, so the memory can ready to hold just a limited number of pieces. Because of this, there will be distinction between the genuine result and a longing results. Thus, some of the time there could be a commotion signal in the result. ‘ The virtual products, for example, MATLAB and Code Composer Studio ought to be checked appropriately whether they have full elements to use in this works at a clock time of 1 GHz execution. TESTING: Testing is the primary part during the time spent plan. Testing will assist us with finding regardless of whether the plan is effective. In this report the plan of IIR channel is tried utilizing DSK6416 board, CRO and a sign generator. The bit by bit process in testing the plan of IIR channel is made sense of beneath. ‘ First, the instruments utilized for testing, for example, DSK6416 board, signal generator and CRO are ought to be associated through links. ‘ The DSK6416 board ought to be associated with PC through USB link. ‘ Now every one of the parts are associated. ‘ In the PC open the Code Composer Studio record. Then open the Project tab, and snap the open task choice. ‘ Now click the .pjt record, which will contain the skeleton of the code where we to plan the code for the IIR channel.

 

‘ Then open the Debug tab and snap the constructed all choice. It is the compiler of the studio to show whether the code we configuration is right or with mistake. ‘ If it shows the blunder, then, at that point, right the code and incorporate it once more, till the code is right. ‘ Then open the Debug tab, and open the associate choice in it. Presently the DSK6416 board is associated with PC. ‘ Now click the document tab, and open the heap program tab. It will the troubleshoot envelope. ‘ Open the organizer and snap the .out record. Presently the program will be added something extra to the DSK6416 board from the PC. ‘ Finally, open the Debug tab and snap the Run choice. ‘ Now the result of the excitement should be visible through CRO. ‘ The info tests are motioned to by generator, by expanding the information frequencies, the sufficiency of the result sign will be expanded high at 20KHz and afterward get diminished at 25 KHz, then increments. ‘ Here MATLAB will show the graphical result of the plan, which will be useful to check regardless of whether the result we got in CRO is right. ‘ The plots of the extent reaction, a drive reaction, stage reaction and shafts/zeros should be visible in the MATLAB. Synopsis: Finally, in this report the two IIR channels are planned and carried out. Utilizing this coursework, the point of getting the itemized information with respect to , the plan of a channel is accomplished. Further this coursework gives information with respect to the use of MATLAB and Code Composer Studio and other equipment parts, utilized for the execution. Finally , planning a computerized channel and its execution have been learnt and done effectively as referenced to carry out.

Proposal frameworks can be considered as an important expansion of customary informa??tion frameworks utilized in ventures like travel and cordiality. In any case, suggestion frameworks have numerical roots and are more much the sam

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